OPEC has no direct impact on the oil market, and non-OPEC countries are becoming more influential, Russian Energy Minister Aleksandr Novak said at the 6th International Seminar of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna.

"OPEC still has a significant role as a regulator with spare
capacity, but it should be noted that there is no direct
dependence from OPEC’s decisions today,” Novak said.
“The role of non-OPEC countries, especially those countries
that are not members of OPEC and also not exporters but
increasing production for their own consumption, is becoming more
important."

The minister added that
the talk was of the US as well, where production has until
recently been growing rapidly. The minister’s statement came a
couple of days ahead of OPEC’s decision Friday on its production
quotas.

In 2014 US production jumped to a 100-year high, but it has
recently slowed as lower prices have made investment in many US
shale projects unprofitable. Last week the total number of oil
and gas drilling rigs in the country fell to 875 units, 991 less
than a year ago.

A so-called “price war”
has escalated since last November when OPEC decided to protect
its market share, rather than cut production and help prices
grow. It kept the quota at 30 million barrels a day, and in the
second half of 2014 oil prices slumped by 50 percent. However,
the biggest OPEC members, such as Saudi Arabia and Iran, have
maintained that they won’t cut production.

Russia ready to plug global oil gap

There’s a deficit in the oil market, as a number of projects are
frozen because of low prices, Novak said. It will be clearly felt
in a few years, he added.

The stable and reliable supply of oil from Russia will smooth out
the possible shocks to the world oil industry and strengthen
energy security, the minister said. The country aims to keep production
at 10.5 million barrels per day over the long term, Novak
said.

"Russia is able to
reliably and predictably ensure stable deliveries to the world
market at a very wide range of prices," Novak said.

Russia working on basis of $60-70/barrel estimate for next
three years: Energy Minister Novak

Russia’s oil reserves are among the cheapest in the world by
production costs, as they have a margin of economic strength even
at low prices, Novak said.

The prices established on the market today are comfortable enough
for the oil industry. There is no secret that Russia reckons on
$60-$65 per barrel in its 2015 budget, he said.

The stability of the Russian oil industry is also confirmed by
the interest of foreign investors, despite Western sanctions. The
share of foreign investments in the equity capital of public
Russian oil companies is more than 26 percent, the minister said.